Feb 26

“North American players looking at shale gas opportunities in Europe”: The Canadian Press

By Trevor J. Murphy shale gas in Europe No Comments »

The same technology that unleashed a natural gas bonanza in North America over the past decade has the potential to transform the European energy industry.

“A year or two from now, the activity over in Europe is going to be absolutely frenetic, and so you’ve got to get in there early,” said Craig Steinke, executive chairman of junior explorer Realm Energy International (TSXV:RLM).

Realm, which has offices in Vancouver and London, is involved in eight different shale basins in seven European countries, though it doesn’t disclose specifics for competitive reasons.

The likes of ExxonMobil Corp. (NYSE:XOM), Royal Dutch Shell PLC (NYSE:RDS), ConocoPhillips (NYSE:COP) and Chevron Corp. (NYSE:CVN) have begun to grab stakes in shale formations in Poland, Germany, Hungary, Ukraine and other European countries.

Some may wonder why North American companies would look for shale opportunities across the Atlantic when there are plenty of promising plays in their own backyard.

“In North America as a whole, the lands have been bid up to significantly high prices,” said Steinke.

“If you don’t have the land, you’re on the outside looking in.”

In Europe, energy companies can negotiate directly with government authorities to acquire large, contiguous tracts of land – though it may not be that way for long if activity picks up, said Steinke.

“Realm’s goal is to be an early mover on acquiring the lands. It’s going to put the company in a very advantageous position as the momentum builds,” he said.

“The opportunity won’t be there forever, that’s for certain.”

Shale is a ubiquitous type of sedimentary rock that is as tough as concrete. Freeing natural gas molecules from within the rock is no easy feat as it requires enormous amounts of water, chemicals, sand and, above all, technical know-how.

North America’s shale gas industry has its roots in the Barnett formation in north-central Texas, where energy companies began honing their techniques about 10 years ago.

Since then, horizontal drilling and multi-stage fracturing have spread to the Marcellus play in New York and Pennsylvania, the Haynesville play in Texas and Louisiana and the Horn River and Montney plays in northeastern British Columbia.

Realm collaborates with U.S. energy services giant Halliburton Co. (NYSE:HAL), which has been active in virtually all of North America’s shale gas plays.

Halliburton has been helping Realm parlay expertise it garnered from North American shale gas plays into European ones, which share many of the same characteristics.

European shale gas is also on the radar of Talisman Energy Inc. (TSX:TLM), already a big landholder in the Marcellus and Montney formations.

“We haven’t done any deals yet, but we are looking hard and depending on how things go, we could see an entry into an international opportunity,” Richard Herbert, Talisman’s executive vice-president of exploration, said on a conference call with analysts and reporters earlier this month.

Another reason European shale gas could be attractive is pricing. North America is currently dealing with a glut situation, in which supply is outpacing demand.

European countries are also eager to stop relying on natural gas imports from Russia, which has had a history of suddenly shutting off supplies amid disputes with its neighbours.

It’s going to take several years of work before European shale gas is commercially viable, said Michael Dawson, president of the Canadian Society for Unconventional Natural Gas.

Energy companies already know all the ins-and-outs of North America’s geology because so much conventional oil and gas drilling has taken place there. That’s not the case in Europe, he said.

There also isn’t much there in the way of specialized equipment needed to drill the high-tech wells. So all of that has to be built or transported from elsewhere.

“I think there has to be a realization that while everybody seems to be getting on the bandwagon with shale gas right now, it just doesn’t happen overnight,” said Dawson.

“It’s not a slam dunk that the shale gas potential in Europe is going to be successful.”

- By Lauren Krugel for The Canadian Press

SOURCE:
MSN.ca: “North American players looking at shale gas opportunities in Europe”

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Jan 28

Exploring France’s Shale Potential

By Trevor J. Murphy shale gas in Europe No Comments »

Though French energy giant Total recently announced a $2.25 billion joint venture with Oklahoma-based Chesapeake Energy Corp., the venture isn’t saying much about the potential for shale gas in France.

This particular deal will see Total invest billions of dollars to acquire 25 per cent of Chesapeake’s Barnett Shale assets – a natural gas field in Texas – rather than staying close to home and exploring the rich resources the European country has to offer.

“There is much shale gas in France,” said Francois Laurant, the man in charge of shale gas at Institut Francais du Petrole. “It has been seeping for centuries around the town of Grenoble in midsoutheastern France. But the disputed areas hold black shale in shallower ground than elsewhere in France like the Paris basin.”

Since late 2008, several companies have been seeking permits to explore shale gas prospects in the southern regions of the country. In August 2009, Toreador was granted a contract for the exploitation of the Paris Basin Oil Shale earning the right to develop 649,000 acres (with an additional 153,000 acres pending approval) where an estimated 65 billion barrels of oil are believed to remain in shale plays.

France’s potential – and, undoubtedly Europe’s potential – was further highlighted when oil giants BP, Shell and Statoil began talks of buying Toreador earlier this month (read: Oil giants BP, Shell and Statoil in talks to buy US-based Toreador Resources) in the interest of acquiring its French shale opportunities.

Shale gas is experiencing an unprecedented boom in the United States, but its popularity is pushing companies and entrepreneurs to look beyond US borders for prime investment opportunities. Recently, Vancouver-based Realm Energy publicly threw its hat into the ring for European exploration, concentrating on eight discrete sedimentary basins in seven European countries and submitted applications for oil and gas rights that collectively extend over 1.5 million acres of land.

SOURCE:
Oil & Gas Journal: “Shale Gas Acreage, European Database Draw Interest”
Rigzone: “Toreador Zeroes is on Paris Basin Oil Shale for Future Developments”
Toreador: “Global Activity – France”
Realm: “Realm Energy Makes Aggressive Play for European Shale Gas Deposits”

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Jan 20

IEA: “Unconventional gas is unquestionably a game-changer”

By Trevor J. Murphy shale gas in Europe 1 Comment »

The recent capitalization on the exploration of shale gas in North America has transformed the global gas-market outlook, says the International Energy Agency.

The rapid development and extraction of the unconventional gas in places like Haynesville and Marcellus in the Unites States have kick-started the ambition by some companies to look to Europe for vast, unexplored shale plays.

“Unconventional gas is unquestionably a game-changer in North America with potentially significant implications for the rest of the world,” said Nobuo Tanaka, Executive Director of the International Energy Agency in a November press release.

The International Energy Agency estimates that unconventional gas resources in Europe, including coal-bed methane, could amount to 35 trillion cubic meters, six times higher than the continent’s conventional gas resources.

Some oil companies have already begun capitalizing on Europe’s un-tapped shale plays. Royal Dutch Shell PLC, for example, is expected to finish drilling its first three wells by the end of March hoping to extract what one spokesman called “enough gas to cover Sweden’s gas needs for at least 10 years.”

Other companies, such as Vancouver-based Realm Energy International, have also announced the will aggressively continue the evaluation and the acquisition of high potential shale deposits throughout Europe (read: Realm Energy, Halliburton Driving Shale Play Development Outside North America).

The Oil & Gas Journal reports that countries currently being evaluated by international oil and gas companies include France, Germany, Austria, Poland, Hungary and the UK.

SOURCES:
International Energy Agency: Press Releases
Oil and Gas India: “Shell begins drilling for shale gas in Sweden”
Oil & Gas Journal

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Jan 06

Realm Energy, Halliburton Driving Shale Play Development Outside North America

By Trevor J. Murphy shale gas in Europe 1 Comment »

From: New Technology Magazine, December 21 2009

In an effort to accelerate shale gas development, Realm Energy International Corporation and Halliburton have announced they will aggressively continue the evaluation of high potential shale deposits throughout Europe and select emerging countries.

In early 2009, Realm Energy began collaborating with Halliburton Consulting on a global evaluation of shale plays with potential for natural gas and oil production. Shale deposits are a proven and significant resource in North America and an emerging unconventional resource in other areas of the world.

With an initial focus on Europe, Realm Energy and Halliburton successfully selected eight discrete sedimentary basins in seven European countries, identified key prospect trends and targeted a substantial amount of petroleum and natural gas leases for acquisition.

“Following our evaluation, Realm Energy is pleased to inform its shareholders that the company is in the process of acquiring large contiguous tracts of land over significant shale formations,” said Realm Energy chairman Craig Steinke.

“As we enter the exploration and development phase of our strategy, we can rapidly transfer Halliburton’s extensive shale knowledge and modify best practices from all North American shale plays to continental Europe and beyond.”

Going forward, Realm Energy will access Halliburton’s global infrastructure and partnerships, leading edge solutions and customized strategies for optimizing value from each specific shale formation, with the highest environmental standards.

Halliburton is one of the world’s largest providers of products and services to the energy industry. The company serves the upstream oil and gas industry throughout the life cycle of the reservoir-from locating hydrocarbons and managing geological data, to drilling and formation evaluation, well construction and completion, and optimizing production through the life of the field.

Realm Energy International Corporation is a Canadian domiciled global energy company focused on driving the exploration and development of major shale plays throughout Europe and emerging countries. The company is in the process of acquiring petroleum and natural gas rights in large contiguous tracts which it has identified as high potential, and is committed to leveraging the most advanced shale technology to bring these resources into production.

SOURCE
New Technology Magazine: “Realm Energy, Halliburton Driving Shale Play Development Outside North America”

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Dec 18

REALM ENERGY, HALLIBURTON DRIVING SHALE PLAY DEVELOPMENT OUTSIDE NORTH AMERICA

By ckeddy natural gas in the USA No Comments »

Vancouver, BC and Houston, TX – December 18, 2009 In an effort to accelerate shale gas development, Realm Energy International Corporation (“Realm Energy” or “the Company”) (TSX.V: RLM) and Halliburton (NYSE: HAL) are pleased to announce they will aggressively continue the evaluation of high potential shale deposits throughout Europe and select emerging countries.

In early 2009, Realm Energy began collaborating with Halliburton Consulting on a global evaluation of shale plays with potential for natural gas and oil production.  Shale deposits are a proven and significant resource in North America and an emerging unconventional resource in other areas of the world.  With an initial focus on Europe, Realm Energy and Halliburton successfully selected eight discrete sedimentary basins in seven European countries, identified key prospect trends and targeted a substantial amount of petroleum and natural gas leases for acquisition.

“Following our evaluation, Realm Energy is pleased to inform its shareholders that the Company is in the process of acquiring large contiguous tracts of land over significant shale formations,” said Realm Energy Chairman Craig Steinke.  “As we enter the exploration and development phase of our strategy, we can rapidly transfer Halliburton’s extensive shale knowledge and modify best practices from all North American shale plays to continental Europe and beyond.”

Going forward, Realm Energy will access Halliburton’s global infrastructure and partnerships, leading edge solutions and customized strategies for optimizing value from each specific shale formation, with the highest environmental standards.

Source: Realm Energy International- Press Release


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